A new program to buy, fix and resell foreclosed homes will put low- and moderate-income families into houses they can afford and create jobs for contractors.

"It's intended to re-energize neighborhoods," said Julie Williams, senior vice-president of the Idaho Housing and Finance Association, which is administering federal millions through Idaho's Neighborhood Stabilization Program.

Nampa, Caldwell, Boise and Meridian are the leading destinations for that money, and officials in all four cities look forward to turning vacant properties into affordable homes for the local work force.

Rehabilitating the acquired homes also will provide jobs for local contractors, said Jim Birdsall, manager of Boise's housing and community development division.

Low- and moderate-income homebuyers should start to benefit from the program within about six months, Williams said, when the first of the revamped homes are expected to get back on the market. The program will continue for about four years, with proceeds from home sales used to buy and repair more foreclosed houses.

WHO'LL GET THE MONEY?

A total of $17.64 million will be spent across Idaho - about 60 percent of it in Canyon and Ada counties, which are in line for $6.7 million and $3.9 million, respectively. Idaho's total share of the 2008 Housing and Economic Recovery Act funding is $19.6 million, but 10 percent of that is set aside for administrative costs.

Using a federal database, IHFA identified the Idaho zip codes hardest-hit by foreclosures, subprime lending and delinquent loans, then crafted a plan to distribute the dollars to areas where the need is highest.

The four highest-need zip codes, plus No. 6, are in Nampa and Caldwell, while Meridian, Boise and Kuna each have a zip code in the top 10.

Some of the acquired homes will be converted into affordable rentals, but most are expected to be resold.

About 10 percent of the funding will go to new construction, IHFA reports, but local leaders are focusing on rehabilitating existing homes.

Communities and nonprofit agencies are in the process of applying to IHFA for the funds.

Nampa and Boise will administer their funding directly, while other cities, including Caldwell and Kuna, will coordinate with nonprofit housing agencies that will apply to fund specific projects. Meridian's program will be handled by the Boise/Ada County Housing Authority.

"Everyone knows the need is greatest out here, but that doesn't mean we don't have to prove we can spend the money appropriately," Caldwell spokeswoman Maggie Colwell said.

HOW DOES THE PROGRAM WORK?

Various rules are in place to keep prices low and spread the available funding as far as possible:

Foreclosed homes must be purchased for at least 15 percent less than current appraisal, a step that might be challenging in dealing with the banks that now own the homes, Nampa Community Development Program Manager Jennifer Yost said.

Rehabilitated homes will be resold at cost - that discounted purchase price plus whatever it cost to revamp the residence and put it back on the market.

Those who buy the homes must earn no more than 120 percent of the local median income. In Canyon and Ada counties, that means a family of four must make no more than $73,100 per year to qualify.

And they must qualify for the loan, Williams said.

"We need to make sure the loan they're receiving doesn't put them at any further risk," she said.

She noted that people who have lost their homes to foreclosure could start anew with one of the revamped houses, as long as the cost doesn't exceed their ability to pay.

Money from the home sales will go back into the program, earmarked for more home purchases in that same zip code.

"No one's trying to make money on this. We're just trying to get people back into homes," Birdsall said.

HOW MANY HOUSES WILL BE PUT ON THE LOCAL MARKET?

Nampa, which hopes to get nearly $4 million, should be able to buy and rehabilitate about 30 foreclosed homes, Yost said.

Caldwell expects to see about 20 homes revamped with $2.3 million.

Boise expects to turn around 10 or 11 homes for $1.8 million.

Meridian's allocation of $1.15 million should be enough to turn around seven properties.

However, Meridian Associate City Planner Matt Ellsworth said, that number is expected to grow to 25 during the life of the program by using sale proceeds to buy and rehabilitate more homes.

Yost estimated most homes will go on the market at prices from $100,000 to $180,000.

IS THIS PART OF THE NEW FEDERAL STIMULUS?

No, it comes from last year's Housing and Economic Recovery Act.

The massive new stimulus package also is expected to funnel millions to housing-related programs, but those programs are separate.

Kristin Rodine: 377-6447